Dell rises as Mizuho ups price target on AI server opportunity
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- Dell Technologies (NYSE:DELL) shares rose nearly 4% on Monday as Mizuho Securities upped its price target on the stock, citing increased opportunities in the artificial intelligence server market.
- “We see DELL gaining share in AI servers as capex percolates and NVDA GPUs supply expands to Tier 2 CSPs and Enterprise/ Sovereign customers,” analyst Vijay Rakesh wrote in a note to clients. “We believe 2H25E ramps with single GPU GB300A (air-cooled) Blackwell could open up AI server orders to Apple as well.” Rakesh upped his price target to $155 from $135 and kept his Outperform rating.
- Additionally, Tier 2 cloud service providers and enterprise and sovereigns should account for roughly 48% of AI server spending by 2027 out of a total $300B, with growth at a 42% compound annual rate, Rakesh said.